Chino Commercial Bancorp Reports 6% Increase In Net Earnings
CHINO, Calif., April 19, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTC: CCBC), the parent company of Chino Commercial Bank, N.A., announced the results of operations for the Bank and the consolidated holding company for the first quarter ended March 31, 2024.Net earnings for the first quarter of 2024, were $1.24 million, which represents an increase of $75.2 thousand or 6.4% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.39 for the first quarter of 2024 and $0.36 for the same quarter in 2023, respectively.
Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the Bank’s performance in Q1’24. Loan quality remains very strong, with the Bank having only one delinquent loan at quarter-end, and no pending foreclosures, or OREO. Despite rising costs of doing business, so far, our small business customers have been able to adjust, and in several cases we have even seen improved financial performance. At this time the Bank has adequate capital and liquidity to continue to lend to its customers, and is expanding lending in the Inland Empire.
In 2023 the Bank became a member of the Card Brand Association and began to directly process Merchant Services for its customers. Not only does this service introduce an additional non-interest source of revenue, but the Bank has also been able to provide significant savings and transparency to a number of our small business customers. Since the Pandemic of 2020, efficient and cost effective processing of electronic payments has become a very important part of managing cash flow and business operations. In the future we can envision expanding this service outside of our immediate market; and the revenue from this service becoming an increasingly important part of the Bank’s business model.
In March, the Bank received preliminary approval from the OCC to open a new branch office in Corona. During March the Bank also completed the purchase of a commercial office building, at 1035 Montecito Avenue, Corona, CA, which will serve as the new Corona branch office. The Corona branch will be the Bank’s fifth location, and is expected to open in 4Q’24.”
*Financial Condition*
At March 31, 2024, total assets were $461.5 million, an increase of $15.1 million or 3.38% over $446.4 million at December 31, 2023. Total deposits increased by $15.4 million or 4.8% to $335.2 million as of March 31, 2024, compared to $319.8 million as of December 31, 2023. At March 31, 2024, the Company’s core deposits represent 98.08% of the total deposits.
Gross loans increased by $1.5 million or 1.0% to $180.5 million as of March 31, 2024, compared to $179.0 million as of December 31, 2023. The Bank had three non-performing loans for the quarter ended March 31, 2024, and as of December 31, 2023. OREO properties remained at zero as of March 31, 2024 and December 31, 2023 respectively.
*Earnings*
The Company posted net interest income of $3.3 million for the three months ended March 31, 2024 and $3.2 million or the same quarter last year, respectively. Average interest-earning assets were $469.3 million with average interest-bearing liabilities of $276.9 million, yielding a net interest margin of 2.87% for the first quarter of 2024, as compared to the average interest-earning assets of $380.3 million with average interest-bearing liabilities of $168.7 million, yielding a net interest margin of 3.39% for the first quarter of 2023.
Non-interest income totaled $773.5 thousand for the first quarter of 2024, or an increase of 30.05% as compared with $594.8 thousand earned during the same quarter last year. The majority of the increase is attributed to the Company’s merchant services processing revenue that reached $132.8 thousand, representing an increase of $91.8 thousand during the first quarter as compared to $41.0 thousand for the same period last year.
General and administrative expenses were $2.4 million for the three months ended March 31, 2024, and $2.1 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.5 million for the first quarter of 2023 and $1.4 million for the same period last year.
Income tax expense was $490 thousand, which represents an increase of $25 thousand or 5.47% for the three months ended March 31, 2024, as compared to $464 thousand for the same quarter last year. The effective income tax rate for the first quarter of 2024 was approximately 28.2%, and 28.4% for the same quarter last year.
*Forward-Looking Statements*
The statements contained in this press release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties, including but not limited to, the health of the national and California economies, the Company’s ability to attract and retain skilled employees, customers’ service expectations, the Company’s ability to successfully deploy new technology and gain efficiencies therefrom, and changes in interest rates, loan portfolio performance, and other factors.
Chino Commercial Bankcorp and Subsidiary
Consolidated Statements of Financial Condition As of 3/31/2024 12/31/2023 unaudited audited
Assets Cash and due from banks $ 44,803,814 $ 35,503,719 Cash and cash equivalents 44,803,814 35,503,719 Fed funds sold 30,175 25,218 30,175 25,218 Investment securities available for sale , net of zero allowance for credit losses 6,615,525 6,736,976 Investment securities held to maturity , net of zero allowance for credit losses 210,812,408 208,506,305 Total investments 217,427,933 215,243,282 Loans held for investment, net of allowance for credit losses of $4,443,654 in 2023, and $4,465,622 in 2023 175,570,771 174,352,293 Stock investments, restricted, at cost 3,126,100 3,126,100 Fixed assets, net 7,225,018 5,466,358 Accrued interest receivable 1,596,955 1,439,178 Bank owned life insurance 8,303,469 8,247,174 Other assets 3,398,462 3,010,916 Total assets $ 461,482,698 $ 446,414,237
Liabilities Deposits Noninterest-bearing 175,979,729 167,131,411 Interest-bearing 159,203,159 152,669,374 Total deposits 335,182,888 319,800,785 Federal Home Loan Bank advances 8,000,000 15,000,000 Federal Reserve Bank borrowings 64,000,000 57,000,000 Subordinated debt 10,000,000 10,000,000 Subordinated notes payable to subsidiary trust 3,093,000 3,093,000 Accrued interest payable 722,181 2,156,153 Other liabilities 1,789,798 1,876,474 Total liabilities 422,787,867 408,926,412
Shareholders' Equity Common stock, no par value, 10,000,000 shares authorized and 3,211,970 shares issued and outstanding at March 31, 2024 and December 31, 2023 10,502,558 10,502,557 Retained earnings 30,164,405 28,920,732 Accumulated other comprehensive loss - unrecognized loss on available for sale, net of taxes (1,972,133 ) (1,935,464 ) Total shareholders' equity 38,694,830 37,487,824 Total liabilities and shareholders' equity $ 461,482,698 $ 446,414,237
Chino Commercial Bankcorp and Subsidiary
Consolidated Statements of Net Income For the three month ended 31-Mar 2024 2023 (unaudited) (unaudited)
Interest income Interest and fees on loans 2,727,801 2,390,159 Interest on investment securities 1,936,105 1,133,586 Other interest income 1,030,948 405,234 Total interest income 5,694,854 3,928,979
Interest expense Interest on deposits 1,032,935 376,861 Interest on borrowings 1,312,693 371,403 Total interest expense 2,345,628 748,264
Net interest income 3,349,226 3,180,716
Provision for loan losses (2,933 ) 2,136
Net interest income after provision for loan losses 3,352,159 3,178,580
Noninterest income Service charges and fees on deposit accounts 439,857 359,899 Interchange fees 92,271 103,159 Earnings from bank-owned life insurance 56,295 46,311 Merchant services processing 132,768 40,955 Other miscellaneous income 52,272 44,439 Total noninterest income 773,464 594,763
Noninterest expense Salaries and employee benefits 1,501,427 1,352,935 Occupancy and equipment 160,581 153,591 Merchant services processing 71,209 10,671 Other expenses 659,466 623,795 Total noninterest expense 2,392,683 2,140,992
Income before income tax expense 1,732,939 1,632,350
Provision for income taxes 489,266 463,901
Net income $ 1,243,673 $ 1,168,449
Basic earnings per share $ 0.39 $ 0.36
Diluted earnings per share $ 0.39 $ 0.36
Chino Commercial Bankcorp and Subsidiary
Financial Highlights For the three month ended 31-Mar
Key Financial Ratios 2024 2023
(unaudited)
Annualized return on average equity 13.07 % 14.26 %
Annualized return on average assets 1.01 % 1.16 %
Net interest margin 2.87 % 3.39 %
Core efficiency ratio 58.04 % 56.71 %
Net chargeoffs/(recoveries) to average loans -0.010 % -0.008 %
Average Balances
(thousands, unaudited)
Average assets 494,406 401,948
Average interest-earning assets 469,307 380,256
Average interest-bearing liabilities 276,918 168,672
Average gross loans 182,133 181,162
Average deposits 318,818 328,448
Average equity 38,073 32,770 End of period 3/31/2024 12/31/2023
Credit Quality
Non-performing loans 475,062 492,242
Non-performing loans to total loans 0.26 % 0.27 %
Non-performing loans to total assets 0.10 % 0.11 %
Allowance for credit losses to total loans 2.46 % 2.49 %
Nonperforming assets as a percentage of total loans and OREO 0.26 % 0.27 %
Allowance for credit losses to non-performing loans 935.38 % 905.82 %
Other Period-end Statistics
Shareholders equity to total assets 8.38 % 8.40 %
Net loans to deposits 52.38 % 54.52 %
Non-interest bearing deposits to total deposits 52.50 % 52.26 %
Company leverage ratio 8.85 % 9.26 %
CONTACT: Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Senior Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, CA. 91710, (909) 393-8880.